Congress to address new flood insurance maps

Maxine Waters, a California Congresswomen and one of the two chief architects of the Biggert-Waters Act of 2012, is leading the coalition to fix its unintended consequences.

Nancy White

A bipartisan legislative effort to make changes to the National Flood Insurance Program (NFIP) is in the works.

Congressman Bill Keating, who represents the 9th Congressional District, has been involved with a coalition of legislators working toward a solution to remedy the unintended consequences of the Biggert-Waters Act.

Over the past few months, concerns about inaccurate flood insurance rate maps put out by the Federal Emergency Management Agency (FEMA), affordability of flood insurance under the new regulations, and the swift implementation of the rate changes have surfaced.

“The effects of (Biggert-Waters) certainly are alarming. It’s something we’ve been working (to address) for quite awhile,” Keating said in a phone interview Tuesday morning.

The Biggert-Waters Flood Insurance Reform Act of 2012 requires changes to the NFIP that were intended to make the program more financially stable. Keating voted for the bill in 2012 when it was attached to a larger transportation bill.

Keating is one of about 20 Congressmen who have been meeting to develop a legislative fix and essentially delay the implementation of its requirements for those most vulnerable until the affordability of the rates can be fully vetted.

“We wanted to build as large and strong of a coalition as possible,” Keating said, adding the coalition was meeting during the partial government shutdown.

The group is largely comprised of Congressmen in coastal districts, where the impacts of the changes to the flood insurance program are most evident.

“It’s both sides of the aisle and we’ve reached out to the Senate as well,” said Keating.

Describing the bill as an “emergency brake,” the Congressman said the legislation would give FEMA, affected residents, communities, and the general public more time to evaluate the flood insurance program.

“We need to go back and make sure the maps are accurate and not put the burden on the homeowner to prove inaccuracies,” Keating said.

In effect, the legislation calls for a four-year delay of the changes for the most vulnerable properties, by delaying implementation of rate increases until two years after FEMA completes an affordability study. (An affordability study was mandated in the original Biggert-Waters bill, but never undertaken). It also builds in a review period of the study for both FEMA and Congress.

The delay will apply to primary, non-repetitive loss residences that are currently grandfathered; all properties sold after July 6, 2012, and all properties that purchased a new policy after July 6, 2012.

One of the other advantages of the delay, Keating said, was it will allow communities more time to look at – and meet the requirements of – the Community Rating System (CRS), which is a federal program that offers discounts on flood insurance to municipalities.

Keating said many communities had their CRS discount lapse over the past year and need additional time to get it back.

The four-year delay would not mean the work on flood insurance would be at a standstill; Keating said it would be a working period at all levels.

“This will be a time for FEMA to get more accurate maps and deal with the affordability issues. It’s really a necessity for people to be aware of these changes, even outside those currently affected,” Keating said, indicating without this delay there could be rippling economic impacts on his primarily coastal district.

Keating said if the legislation passed, the funding for its requirements would have to be found by legislators, either through a new revenue source or cuts in other areas.

According to a release from the House Committee on Financial Services, the legislation will be released early next week in the House and Senate.

Keating said it’s clear the effects of the Biggert-Waters bill now recognized by Congress were not the intent of the original sponsors.

Maxine Waters, a California Congresswomen and one of the two chief architects of the Biggert-Waters Act of 2012, is leading the coalition to fix its unintended consequences.

Keating said the coalition is hopeful the bill would move forward quickly.